Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net

The Economics of Transition, Vol. 8, Issue 2, July 2000

Posted: 23 Sep 2001

See all articles by Michael Lokshin

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Martin Ravallion

Georgetown University

Abstract

We compare welfare indicators for a nationally-representative sample of Russians interviewed shortly after the 1998 financial crisis with data on the same people two years earlier. Both objective and subjective measures reveal a widespread, though not universal, deterioration in welfare. Current expenditures generally contracted more than incomes. Inequality fell. There were both gainers and losers at all levels. The safety net's response fell far short of what was needed to protect living standards, but it did help prevent even greater poverty. Even without better targeting, a modest expansion of the safety net could have prevented an increase in income poverty in the aftermath of the crisis.

Suggested Citation

Lokshin, Michael and Ravallion, Martin, Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net. The Economics of Transition, Vol. 8, Issue 2, July 2000. Available at SSRN: https://ssrn.com/abstract=241588

Michael Lokshin (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Martin Ravallion

Georgetown University ( email )

Washington, DC 20057
United States

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